Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., March 2, 2026.
Brendan McDermid | Reuters
S&P 500 futures moved lower Tuesday morning as traders watched rising geopolitical tensions amid the conflict between the U.S. and Iran.
S&P 500 futures slipped 0.75%, while Nasdaq 100 futures were off 0.89%. Futures tied to the Dow Jones Industrial Average lost 351 points, or 0.72%.
The S&P 500 and Nasdaq Composite closed the previous session in the green, marking a sharp reversal from their lows earlier in the session. The broad-market index closed just above the flatline, while the tech-heavy Nasdaq gained nearly 0.4%. The 30-stock Dow lost 73 points, or 0.15% — far off of its lows of the day when the index dropped nearly 600 points.
Investors bought the dip in stocks, which were initially lower to start the new trading week on fears that the widening conflict between U.S. and Iranian forces would weigh on markets. Several defense and energy companies rallied on Monday. Northrop Grumman and Palantir were among the S&P 500’s best performers, up 6% and 5.8%, respectively. A roughly 3% jump in Nvidia helped lift the broader market.
“Historically, what in the near term seems like a geopolitical crisis tends to be largely resolved from a market perspective over the ensuing six months, and where it’s not, it’s often because of an economic downturn that the geopolitical crisis didn’t cause,” Carson Group chief market strategist Ryan Detrick said in a note. “We believe the market has already been pricing in the possibility of a conflict for a month, which may limit the size of a further move and may cause a quicker rebound when the market sees a likely path to resolution.”
Global crude oil prices surged Monday on worries that the U.S.-Iran conflict could disrupt oil infrastructure and push up fuel prices, adding inflationary risks. An Iranian Revolutionary Guard commander said the Strait of Hormuz—the world’s most vital transit route for crude oil—is closed and that Iran would set ablaze ships attempting the route, Reuters reported, citing Iranian media.
Monday was the third day of the U.S. war against Iran after joint U.S.-Israeli military strikes killed Supreme Leader Ayatollah Ali Khamenei over the weekend. U.S. military leaders said more forces are headed to the region and President Donald Trump said the war is projected to last four to five weeks, but that it could go on “far longer than that.”
Heading into Tuesday, investors are awaiting key earnings from cybersecurity company CrowdStrike and retailer Target. Quarterly reports from chipmaker Broadcom and membership warehouse giant Costco are due later this week.
South Korea’s Kospi leads losses as Asia markets as Iran conflict rages on
Markets in Asia mostly fell as the conflict in Iran entered its fourth day, with South Korea’s Kospi tumbling more than 5% as trading resumed after a public holiday.
While the index suffered losses, defense players saw massive gains, with some stocks up over 20%.
Japan’s Nikkei 225 extended losses from the prior session to drop 2.49%, weighed down by energy and consumer cyclicals, while the Topix fell 2.47%.
Hong Kong Hang Seng index was down 0.29%, while mainland China’s CSI 300 was also 0.24% lower.
Australia’s S&P/ASX 200 was down 1.24%, after being one of the few markets on Monday to record a marginal gain.
— Lim Hui Jie
South Korea defense stocks soar as traders react to Iran war
South Korean defense stocks saw massive gains on Tuesday after the country’s markets returned from a public holiday, as the Iran war fuels interest in defense names globally.
Heavyweight Hanwha Aerospace, which is South Korea’s largest defense manufacturer, saw shares surge 22%, while Korea Aerospace Industries gained more than 7%.
Shares in Lignex1, maker of South Korean air defense systems, soared 30%, while Victek and Firstec, which make electronic warfare systems and anti-aircraft missile components, respectively, rose more than 20%.
— Lim Hui Jie
How high can oil and gas prices go as the U.S.-Iran war continues?
The global oil market is facing a worst-case scenario as the U.S. war with Iran engulfs the Middle East with no clear off ramp, increasing the risk of a prolonged supply disruption that could slow the global economy.
Tanker traffic through the Strait of Hormuz, the world’s most important chokepoint for oil shipments, has come to a standstill as ship owners take precautionary measures. About a third of the world’s total seaborne oil exports passed through the Strait in 2025, according to energy consulting firm Kpler.
At one point, crude oil prices surged more than 12% earlier Monday. European natural gas futures soared more than 40%. Prices could rise higher still depending on how long the war lasts and whether Iran targets Persian Gulf energy infrastructure.
Drivers in the U.S. will likely see gasoline prices start to rise today or tomorrow, said Patrick De Haan, head of petroleum analysis at GasBuddy. Motorists should expect an average 10- to 30-cent per gallon increase at the pump over the next week, De Haan said. Read more on how high can oil and gas prices can go amid the war here.
— Spencer Kimball
MongoDB, Plug Power, Credo Technology among stocks moving in late Monday trading
Check out the companies making headlines in after-hours trading.
- MongoDB — Shares plunged 23% in extended trading. MongoDB said it sees first-quarter adjusted earnings per share of between $1.15 and $1.19 and revenue of between $659 million and $664 million. Analysts polled by LSEG expected earnings of $1.21 per share and $662 million in revenue for the first quarter.
- Asana — Shares of the enterprise work management software platform dropped more than 1% after the company issued disappointing guidance. Asana, which beat fourth-quarter expectations on top and bottom lines, said it expects first-quarter revenue to come out between $202.5 million and $204.5 million, while analysts polled by LSEG expected $204 million. The company also guided full-year revenues between $850 million and $858 million, compared to the estimated $857 million.
- Plug Power — Plug Power reported strong sales in its fourth quarter, leading shares to jump more than 7%. Plug Power posted an adjusted loss of 6 cents per share for the period, better than the 10 cents per share loss analysts polled by LSEG were calling for. The company’s revenue of $225 million was also higher than the $218 million expected.
For the full list, read here.
— Pia Singh
